What Solar and Battery Incentives Does Maryland Offer?
With a healthy offering of solar incentives, Maryland is an underrated state for saving money with home solar panels.
But with a combination of tax breaks, rebates, and solar renewable energy credits (SRECs), homeowners in Maryland can substantially reduce their energy costs and protect themselves from utility rate increases by installing a home solar system.
In this article, we’ll explore each of these incentives, how they would reduce the cost of a 5 kW system with a gross price of $25,000, and how paying for solar electricity compares to paying for grid electricity.
Compare multiple solar quotes from trusted Maryland-based installers.
What solar incentives does Maryland offer?
There are a handful of solar incentives in Maryland that can reduce the cost of buying solar panels.
- Sales and property tax exemptions
- The residential clean energy grant program
- Solar renewable energy certificates (SRECs)
- Net metering
Let’s see how they reduce the cost of a $25,000 solar system.
Solar sales and property tax exemptions in Maryland
The first incentive to kick in is a sales tax exemption on solar energy equipment. Given Maryland’s 6% sales tax rate, this amounts to $1,500 on a $25,000 system.
Maryland also has a property tax exemption that applies to the additional home value created by a solar system. So, you can expect your solar system to increase the resale value of your home, but you won’t have to pay state or local property tax on that value.
Maryland Solar Access Program (MSAP)
The Maryland Solar Access Program (MSAP) helps income-qualified homeowners reduce the cost of residential solar by offering state grants of up to $750 per kilowatt, capped at $7,500. For example, a homeowner installing a 5 kW solar system could receive approximately $3,750 in upfront incentives, significantly lowering out-of-pocket costs.
Eligibility generally requires the home to be owner-occupied, used as a primary residence, and household income to be at or below 150% of the Area Median Income. Systems must be installed by approved contractors, and funding is first-come, first-served through the Maryland Energy Administration.
| Line item | Cost |
| Gross cost | $25,000 |
| MSAP rebate | -$3,750 |
| Net cost | $21,250 |
Maryland Solar Renewable Energy Certificates (SRECs)
The second biggest solar incentive in Maryland is the opportunity to earn and sell solar renewable energy certificates (SRECs). Registered solar systems earn one SREC for every 1,000 kW (1 MW) of electricity they produce. These certificates are sold to utility providers through brokers like SRECTrade and Sol Systems.
Like stocks on the New York Stock Exchange, the value of SRECs fluctuates based on the market. The certificates can be held for up to three years and, once registered, solar systems are eligible to produce SRECs as long as they produce electricity. As of December 2025, SRECs were valued at $50 each.
So, if our 5 kW system produces 6,400 kWh of electricity in a year, that would translate into 6 SRECs worth a combined total of $300.
It’s impossible to say where SREC prices will go. But, for easy math, let’s say the price averages $50 over the next seven years and our 5 kWh solar system produces 42,500 kWh of electricity.
Here’s how that impacts the net cost of our 5 kW system.
| Line item | Cost |
| Gross cost | $25,000 |
| Clean Energy Rebate | -$3,750 |
| Price paid | $21,250 |
| 7 years of SRECs | -$2,100 |
| Net cost | $19,150 |
Of course, the system will produce electricity and SRECs much longer than 7 years, but Maryland’s solar carve-out is currently scheduled through 2030, and it’s hard to say what will happen after that.
How to earn and sell SRECs in Maryland
- Register your system with the Maryland Public Service Commission (PSC) to become an eligible SREC generator
- Register your system in PJM’s Generator Attribute Tracking System (GATS) to track your generation and earn SRECs
- Sell your SRECs on aggregators like SRECTrade and Sol Systems
Net metering in Maryland
Net metering is a billing structure that allows solar owners to earn credit for the excess electricity that they push onto the grid. This credit can be used to offset the cost of electricity they pull from the grid when their solar panels aren’t producing.
Maryland has a strong net metering policy that requires utilities to credit solar owners for the full retail rate of electricity for solar exports. In other words, the value of electricity pushed onto the grid is equal to the value of electricity pulled off the grid. This 1-to-1 net metering structure is one of Maryland’s strongest solar incentives because it allows homeowners to completely replace their electricity bills with lower payments on their solar panels.
It’s worth noting that Maryland has a 3,000 MW capacity limit for net-metered solar systems, and 932 MW of that capacity was operational by October 2021. So, net metering won’t be available forever in Maryland, and it’s worth locking in this strong policy while it’s available.
Maryland battery storage incentives
More and more homeowners are adding battery storage to their solar systems to provide backup power during outages and further distance themselves from their utility provider. Maryland has a state incentive called the Energy Storage Grant Program. The state tax credit is worth 30% of the installed cost of the battery or $5,000, whichever is less.
This program’s funding was quickly reserved for Fiscal Year 2026 and is currently closed to new applications.
Let’s say you wanted to add 10 kWh of battery storage at an installed cost of $10,000. Here’s how the tax credits would combine to reduce the cost.
| Installed cost | $10,000 |
| MD tax credit (30%) | -$3,000 |
| Net cost | $7,000 |
Are solar panels worth it in Maryland?
With rebates, tax breaks, and SRECs, Maryland has more solar incentives than most states. Between these incentives and the rising cost of electricity, homeowners in the Old Line State stand to save tens of thousands of dollars by paying for solar panels instead of grid electricity.
By paying cash, a homeowner can maximize their lifetime savings potential. Taking out a 20-year solar loan reduces the overall savings, but can provide bill savings within the first few years.
Frequently asked questions
Can I get free solar panels in Maryland?
No, you cannot get free solar panels in Maryland, or any other state, for that matter. Ads for “free solar panels” are usually scams that mislead homeowners into signing long-term solar leases with escalating monthly fees.
While solar panels may not be free in Maryland, the state does have a handful of incentives that can substantially reduce the cost of solar equipment and battery storage.
Does Maryland buy back solar energy?
Maryland’s clean energy goals require utilities to buy a certain amount of solar renewable energy certificates (SRECs) per year. Solar owners in Maryland can earn SRECs with their solar production and sell them back to their utility provider. In December 2023, SRECs were valued at $57 each.
